In a deal that reshapes the continent’s electricity map, TotalEnergies has agreed a multibillion-euro share swap that hands it control over a vast fleet of flexible power plants, batteries and biomass units spread across Europe, signalling a new era where French strategy weighs heavily on Europe’s energy future.
A €5.1 billion bet that changes the balance of power
TotalEnergies is paying €5.1 billion in shares to acquire 50% of a Czech-based flexible electricity platform operated by EPH (Energetický a průmyslový holding). The platform groups gas-fired power plants, biomass units and large-scale battery storage in several key EU countries.
The French group, already France’s largest company by revenue with more than €200 billion in 2024, is not just adding capacity. It is buying strategic control over how and when part of Europe’s power is produced, at a time when intermittent renewables keep rising and grid stability turns into a political issue as much as an industrial one.
Through this deal, a new European energy heavyweight emerges, steered from Paris but deeply embedded in the continent’s gas-to-power machinery.
The transaction is structured as a share exchange rather than cash. TotalEnergies will issue around 95.4 million new shares at an average price of €53.94 each. In return, EPH contributes assets valued at about €10.6 billion.
This makes EPH one of TotalEnergies’ biggest shareholders, with roughly 4.1% of the company. The move knits the two groups together financially and strategically, far beyond a simple asset trade.
Inside the 50/50 joint venture: 14 GW today, more to come
At the heart of the agreement lies a 50/50 joint venture that will manage the power assets on an integrated basis. Operational decisions will be shared, but commercialisation of the electricity will largely run through tolling contracts, a model well known in the power sector.
What the new platform controls
The joint venture starts with more than 14 GW of gross installed capacity, either in operation or under construction. These assets currently produce about 15 TWh per year, with a target of 20 TWh by 2030 as new plants and battery projects ramp up.
- Flexible gas-fired plants able to start and stop quickly
- Biomass units that can provide low-carbon baseload or peak support
- Grid-scale battery systems that help stabilise frequency within seconds
- A pipeline of 5 GW of additional projects in Western Europe
This capacity sits in some of the most exposed and interconnected electricity markets in Europe: Italy, the Netherlands, the UK, Ireland and France. Each market brings different price dynamics and regulatory regimes, which gives the platform multiple ways to earn revenue from volatility and peak prices.
| Country | Total capacity | Main assets | Status |
| Italy | 7.5 GW | New-generation gas plants | 3.7 GW in operation, 2.4 GW in construction, 1.4 GW in development |
| UK & Ireland | 7.1 GW | Gas, biomass, batteries | 5 GW operational, 0.4 GW in construction, 1.7 GW in development |
| Netherlands | 3.6 GW | Gas, batteries | 2.6 GW operational, 0.2 GW in construction, 0.8 GW in development |
| France | 1.1 GW | Batteries | 100 MW in construction, 1 GW in development |
By 2030, this Franco-Czech platform could account for a sizeable share of flexible capacity in Western Europe’s most stressed grids.
EPH: the quiet consolidator behind Europe’s thermal backbone
To understand why this deal matters, it helps to look at EPH’s track record. Founded in 2009, the group grew fast by buying unloved or “transitioning” thermal assets across Europe, often from major utilities keen to clean up their balance sheets.
A decade of opportunistic acquisitions
In 2013, EPH acquired Slovak Gas for €2.6 billion, including a stake in national gas company SPP. It then snapped up assets from EDF, E.ON, Enel, RWE and Vattenfall, focusing on gas, coal, cogeneration and critical transmission infrastructure.
Between 2014 and 2016, the shareholder structure shifted around Czech billionaire Daniel Křetínský and partner Patrik Tkáč, while the group expanded into the UK, Italy, Germany, Hungary and France. Today EPH still holds 49% of Eustream, Slovakia’s main gas transmission operator, a strategic asset for Central European supply routes.
The strategy has been simple: buy thermal or so-called “stranded” assets cheaply, then upgrade, repurpose or run them more flexibly in response to the rise of renewables and carbon pricing. Where many saw liabilities, EPH saw options.
Why flexible power is suddenly fashionable
The European power system is changing direction fast. Solar and wind capacity is growing every year, but the sun does not shine on demand and wind patterns are unpredictable. Grid operators are now judged on their ability to keep the lights on in this new landscape.
The missing link between renewables and reliability
Flexible gas plants, batteries and biomass units fill the gaps. They do not run all the time; they run when prices spike, when clouds cover solar farms or when wind speeds drop across the North Sea.
TotalEnergies wants a full-stack model: renewables provide low-carbon energy most of the time, while flexible assets step in to balance the system and catch profitable price peaks.
The aim is not just green power, but dependable, schedulable electrons that can meet a winter evening peak as reliably as a summer afternoon surge in air conditioning.
From an investor’s angle, flexibility is also a hedge. When wholesale prices crash during sunny or windy hours, batteries and gas units can wait. When the grid screams for capacity, they move first and get paid the premium.
Gas, LNG and power: a single integrated play
The deal also forges a tighter link between TotalEnergies’ LNG arm and its European power ambitions. The company already ranks as Europe’s top gas supplier and among the global leaders in LNG trading.
With this new platform, TotalEnergies can redirect about 2 million tonnes of LNG per year into its own power plants. That creates a fully integrated chain:
- LNG purchased and shipped globally
- Regasification in European terminals
- Gas-fired power generation in Italy, the Netherlands, the UK and beyond
- Electricity sold into volatile wholesale markets or to industrial customers
This reduces exposure to third-party generators and allows the French group to capture margins at every step, from upstream gas cargoes to final electrons sold to data centres, factories or retailers.
A new power centre in European energy politics
Control over flexible power capacity is turning into a strategic asset, almost as sensitive as pipelines or interconnectors. By anchoring this platform under a French-listed major, Paris strengthens its influence in future EU energy debates, from capacity mechanisms to cross-border congestion rules.
For EPH, taking 4.1% of TotalEnergies means hitching its largely Central and Western European portfolio to a global player with strong positions in Africa, the Middle East and the US. Křetínský gains a seat, indirectly, at the top table of global energy trading and project development.
The transaction still needs regulatory approval and worker consultation in various countries. If timelines hold, completion is targeted for mid-2026, just as the EU tightens climate targets for 2030 and revisits its market design rules.
Key concepts behind the deal
What is a tolling contract in power?
Tolling agreements sit at the core of this partnership. Under a typical tolling contract, the buyer supplies the fuel – often gas – to a power plant. In return, the plant operator converts that fuel into electricity for a pre-agreed fee, based on the plant’s efficiency and operating costs.
This structure allows trading desks or large industrial players to control fuel and power price exposure while leaving technical operation to specialists. In the new joint venture, it helps keep market access and risk management flexible for both EPH and TotalEnergies.
How this could affect consumers and businesses
For households, the impact will not show as a logo on the bill. It will appear in the background, through fewer blackouts, less reliance on emergency coal, and price swings that are moderated by having more plants able to start quickly.
For large energy users – steel plants, data centres, chemical sites – this new platform may become a key partner. Flexible plants combined with long-term contracts can secure stable prices while supporting decarbonisation goals, for example by running on lower-carbon gas or co-firing with biomass.
Risks, trade-offs and future scenarios
The strategy still carries clear risks. Gas remains a fossil fuel, exposed to carbon prices and geopolitical shocks. A sharp rise in CO₂ costs could erode margins if plants do not shift gradually to lower-carbon gases like biomethane or hydrogen blends.
There is also the risk of regulation moving faster than infrastructure. If the EU tightens limits on gas-fired generation before enough storage and grid expansion is in place, operators will face more complex compliance and investment decisions. On the other hand, a disorderly transition without flexible assets could bring price spikes and political backlash.
One plausible scenario is a decade-long “bridge” phase where gas and large batteries support a massive expansion of wind and solar. In that context, the new Franco-Czech energy giant would stand in a central position: managing the bridge, setting prices at the margin, and shaping how quickly coal exits and hydrogen or other new technologies scale up.
